Catalist-listed P99 Holdings announced on Monday that it is now a cash company after settling a dispute with its core subsidiary.
The company formerly known as China Fashion Holdings, said an arbitration dispute that it brought against subsidiary Asia Brand Group and Liu Yanlong, the warrantor in the deal that saw P99 acquire Asia Brand in 2011, was resolved on November 27.
Following that ruling, P99 received net proceeds of $2.66 million from the 2011 sale and purchase of shares. Based on its unaudited financial statement as at 30 June 2014, the adjusted cash and bank balance of the company after adjusting for the net proceeds of $2.66 million would have been approximately RMB52.04 million (S$11.07 million).
Follwoing the dispute settlement, P99 felt it did not have control over Asia Sport Alliance Pte. Ltd. and its subsidiary, ASA Group, despite being their legal owner, and have deconsolidated the financial statements of ASA Group since September 30, 2013.
With the deconsolidation, P99 has ceased to have any operating business and will be subject to the requirements of a cash company under Singapore Exchange rules.
P99 said it will be making an application to SGX to maintain its listing status and to continue the trading of its shares on Catalist. It is also considering various options available to the company.
It warned shareholders there is no assurance that SGX will not suspend the trading and listing of the company's shares or that the company will be able to acquire a new business that meets SGX's requirements for a new listing within the timeframe given.
Shareholders are advised to read this announcement and any further announcements by the Company carefully. Shareholders should consult their stockbrokers, solicitors or other professional advisors if they have any doubts as to the actions they should take.
P99 shares last traded at 8.3 cents on Friday.